Seattle has been experiencing a stronger than average real estate market, when compared with other cities in the United States. With the Federal Reserve recently increasing the prime rate, there’s a risk of a national cool down of the real estate market. Thankfully, due to an overall population increase in the Seattle area and the rise of Seattle technology companies, chances are strong that the Seattle market will continue to be one of the strongest real estate markets in the nation in 2017. If you are considering buying or selling a home, this upcoming year will likely be a great year to invest in Seattle real estate.
Emerging Trends in Real Estate Places Seattle in the Top 5 Markets
Every year, the Urban Land Institute and PwC put together a list of their predictions for the upcoming year’s real estate market. Typically, this includes several rankings of urban areas. In 2017, Seattle is included in the top five markets to watch. In terms of investor demand for real estate, Seattle earned the coveted top spot. Investors are anticipated to continue substantially investing in Seattle real estate, both for rental properties and for profit-based house flipping.
Seattle Ranks Strong for Homebuilding Prospects
When it comes to homebuilding prospects, Seattle ranks 12th. This lower position is no doubt due to the scarcity of unimproved land that creates sprawl in other urban areas. Still, that rank at number twelve keeps Seattle in the top 20 percent of cities included in this forecast, indicating that overall, all signs point to a strong upcoming year for real estate sales and home values in the Seattle area. This means that Seattle homeowners are likely to see an increase in the value of their homes, while the local real estate market continues to produce more demand than supply.
Home Values and Sale Prices Will Continue to Trend Upward
As demand in the Seattle real estate market has eclipsed available homes on the market, the average selling price for homes in the Seattle area has increased. Given that Seattle home prices are already relatively high, when compared with similar homes in other cities and urban markets, this could make 2017 a great year to sell your home. With prices on the rise, the chance of making a solid profit on a home that was purchased years ago when prices were low is good.
Of course, the other side of this price increase is that you will also be paying more for the next home you purchase, so be sure to look into average prices in your desired neighborhoods before committing to list and sell your home. You may find that financing will be required to make up the difference between the sale price of your current home and the purchase price of your desired new home. Don’t let that deter you, however. A good Realtor can help you make the most of your equity and available capital and help to prevent delays in between selling your home and buying a new one.
Technology and Employment Opportunities Will Drive Demand
Seattle is heavily involved in the world of technology. There are numerous large companies that provide cloud computing and online retail services in the area. Demand for these services is only increasing, which is leading to an influx of professionals. These IT professionals are commanding much higher salaries in the Seattle area than in other urban areas, allowing them to afford and support the higher prices of homes in the most desirable Seattle neighborhoods. Because of this, areas around technology companies are experiencing high demand, partnered with higher sale prices.
The outlook for 2017 shows no indication that the trend of technology expansion in Seattle will slow. If anything, there will continue to be greater demand for technology based services on an increasingly global market. This, in turn, will likely lead to expansion of existing technology firms and the development of new companies in the Seattle area in the upcoming year. That will produce an influx of professionals seeking employment. Their addition to existing demand will support the Seattle real estate market and ensure the continued climb of average sale prices.
2017 Will Be a Strong Year for Seattle Real Estate
Barring any sort of unforeseen disruption to technological expansion and the overall economy, Seattle is poised to have an excellent year in 2017 when it comes to real estate. Home values for most neighborhoods in Seattle should be on the rise. Professionals will continue to flock to the Seattle area, increasing demand for housing and strengthening the overall economy with their spending and local investments.
If you are planning to purchase a home in 2017, be patient and work with an experienced Realtor. Your chances of successfully making an offer on your dream home will improve if you pre-qualify for a mortgage before beginning your home shopping. This will allow you to make an offer you know you can back up with financing, giving you confidence to pursue the home of your dreams!